Why is the Government introducing

MEES in April 2018?

 

The built environment has been identified by government as a major contributor to Greenhouse Gas (GHG) emissions and thus poses a threat to the UK meeting its carbon reduction targets for 2020 and 2050. Download our MEES information sheet.

  • MEES stands for minimum energy efficiency standards
  • It will be unlawful to let any building which doesn’t meet EPC ‘E’ rating
  • This will take effect in April 2018
  • This will apply to new lettings and lease renewals
  • This will be rolled out to ALL buildings in 2023
  • Savills say a fifth of UK industrial stock could need modernisation of some sort
  • Outdated lighting probably one of four main issues
  • Installing LED lighting can be a more cost effective, quick fix
  • Landlords face potential loss of rental income

 

MEES applies to these buildings and tenancies:

  • Buildings which are not required to have an EPC: such as industrial sites
  • Buildings where the EPC is over 10 years old or where there is no EPC
  • tenancies of less than 6 months (with no right of renewal)
  • tenancies of over 99 years

 

Exemptions to the MEES legislation?

The ‘Golden Rule’: where an independent assessor determines that all relevant energy efficiency improvements have been made to the property or that improvements that could be made but have not been made would not pay for themselves through energy savings within seven years. Some examples of what are considered to be ‘relevant’ improvements are the installation of double-glazing and pipework insulation.

 
Devaluation: where an independent surveyor determines that the relevant energy efficiency improvements that could be made to the property are likely to reduce the market value of the property by more than 5%.

Third Party Consent: where consent from persons such as a tenant, a superior landlord or planning authorities has been refused or has been given with conditions with which the landlord cannot reasonably comply.

 

luxonic-basingstoke-hq

Luxonic Basingstoke headquarters.

 

Penalties for non-compliance

The penalty for renting out a property for a period of fewer than three months in breach of the MEES Regulations will be equivalent to 10% of the property’s rateable value, subject to a minimum penalty of £5,000 and a maximum of £50,000. After three months, the penalty rises to 20% of the rateable value, with a minimum penalty of £10,000 and a maximum of £150,000.

 

Financial Aid for LED Lighting Purchase

The Energy Technology List (ETL), is a government list of nearly 17,000 energy saving products. Companies who purchase products listed on the Energy Technology List can claim a 100% Enhanced Capital Allowance (tax relief). An alternative financial aid is the Carbon Trust’s Green Business Fund, which provides energy assessments, training workshops, equipment procurement support and a financial contribution of up to £5,000 towards your energy efficient, lighting system. Luxonic is proud to be a Carbon Trust Accredited supplier.

Download our MEES information sheet